Exploring Small Business Financing at the Intersection of Alternative Lending Industry

The idea of small business financing and traditional lending outlets like banks is almost an oxymoron in itself. With myriad restraints, such as restricted cash flow, delayed payments, and constant capital demands, small businesses have often found themselves struggling to avail financing.

This was the case just a few years ago when SMEs regularly faced an uphill battle trying to convince banks and credit unions to lend to them. The banks had their justifiable qualms and often rejected more applications than the ones they accepted. But with alternative financing industry abloom - thanks to alternative lenders like CrestHill Capital and Mantis Funding - things have changed drastically and for the better.

Business Financing for Small Businesses

It is a small business that takes the hit when cash flow is restrictive. Positive and constant cash flow is mandatory for growth-focused SMEs looking to capitalize on available opportunities. The various reasons why an SME finds it difficult to maintain the cash flow are:

1. Delay in payments by clients and invoice clearance
2. Unexpected personal circumstances 
3. An unexpected change in customer buying behavior 
4. Global market fluctuations
5. Overstocking
6. Seasonal demand
7. Low profits in the beginning
8. Overtrading

Traditional banks have stringent conditions, especially high credit scores and collateral demands. Most small business owners can't really fulfill these conditions, and hence their financing requests are usually rejected by banks. This is where alternative lenders like CrestHill Capital and Mantis Funding step in.

Alternative lenders like Cresthill Capital understand how the credit risk of businesses can no longer be assessed using the age-old primitive criteria that are way too narrow for our current economic market needs. Their funding conditions venture beyond the restrictive two-dimensional requirements of high credit scores and heavy collaterals.

Modern age alternative lenders like Mantis Funding implement new specific underwriting practices to assess the creditworthiness of each applicant's business. The aim is to put minimal constraints on worthy clients and disburse capital to qualified applicants as fast as possible. Typical delays like arduous documentation, lengthy processes, long wait, and strenuous legal hassles are reduced drastically. The aim is fast capital access to match faster times.

Future of Small Business Financing

With remarkable work done by alternative lenders like CrestHill Capital and Mantis Funding, the future seems to be very bright for small businesses looking to expand over the next decade. According to this report, nearly ⅔ of small businesses in need of financing did not turn to traditional banks and instead opted for alternative lending.

In other words, their first and last choice was business financing from alternative lenders. This pretty much says everything about the ease and trustworthiness in associating with non-traditional financing outlets. A quick look through the Mantis Funding reviews will give a deeper understanding of what clients appreciate most about alt-lending platforms.

Without an ounce of doubt, the next two decades will highly favor the alternative lending industry-driven growth stories. Easily accessible working capital is no longer a utopian concept for small and medium enterprises. Thanks to the alternative financing industry, it is now a realistic and mainstream option for accessing cash when needed.